Problem: An industry consists of three firms with sales of $200,000, $500,000, $400,000.
a. Calculate the Herfindal-Hirschmann index (HHI)
b. Calculate the four-firm ratio. (C^4)
c. Based on the US Dept. of Justic Mergers Guidelines do you think the dept would block the merger between the firms with sales of $200,000 and $400,000. Explain your findings.